Leave loading on disaggregated rates

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Tiffany
Tiffany Member Posts: 30 ✭✭

Hi

I watched the webinar on Friday regarding the STP problems and I am still having an issue with the fact that I have to manually calculate the leave loading to include the all purpose allowances. I have created a new Leave Loading payroll item as discussed in the Webinar and I cannot understand why cant Reckon create an extra window in the payroll item that will allow me to select what payroll items the 17.5% loading is calculated on and we can then create a or several Holiday all purpose allowances that the new Leave Loading can calculate the 17.5% on. I know this will mean we have more allowances on the payslips but it would alleviate the necessity to manually calculate the leave loading. Being in the Construction Industry we do not have time in Lieu so often our employees will leave work half an hour here or an hour there through the week so with our average 25 employees I basically have to do a spreadsheet to ensure the correct amount is what I am entering.

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  • 659441
    659441 Member Posts: 9
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    Hi Tiffany,

    I have also logged on today to ask this very same question. It is so frustrating to have to manually add all of the allowances onto the gross wage (especially when there are multiple employees with different allowances that apply) and then sort out the loading from that. For large company's such as ours, this is a huge time-waster, and needs attending to promptly.

  • Graham Boast
    Graham Boast Accredited Partner Posts: 331 Accredited Partner Accredited Partner
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    Graham Boast | 0409 317366 | graham@reckonhelp.com.au

  • Traceyg
    Traceyg Member Posts: 12
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    Hello Graham & Tiffany

    I also did the STP course on Monday and have found Graham's way easier than Clayton's. (Sorry Clayton)

    However I have just lodged my payroll and noticed neither my Total Gross or Adjusted Gross match

    the Total Gross at the top of the STP lodgment. ( The PAYG matches though)


    It had total Gross as $17 302.69 so this is the Total Gross $17 307.53 minus the Industry Allowance $4.84. Have I done something wrong or will I just check the difference is the Industry Allowance every week?

    Just double checking before I go too far.


    Thanks the help has been terrific😊

  • Graham Boast
    Graham Boast Accredited Partner Posts: 331 Accredited Partner Accredited Partner
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    Hi Tracey

    Yes, deduct the Industry Allowance. In effect, it has already been included in the Hourly Pay figure.

    Graham Boast | 0409 317366 | graham@reckonhelp.com.au

  • Traceyg
    Traceyg Member Posts: 12
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    Ahh silly me of course.

    Thank you much appreciated.

  • Tiffany
    Tiffany Member Posts: 30 ✭✭
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    Hi Graham

    Would that mean that the STP file would have the gross figure as the hourly rate that you have already got the allowances added to and then also the allowances allocated to the industry allowance and in our case our employees have 3 all purpose allowances. Wouldn't this make the employees weekly and YTD figures incorrect ?

  • Graham Boast
    Graham Boast Accredited Partner Posts: 331 Accredited Partner Accredited Partner
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    Hi Tiffany. The offset is also reported against gross, but as a negative amount. This deducts the offset from the gross in the hourly rate. When you do an STP lodgement, select details and you can see the amount reported dissected for each person.

    Graham Boast | 0409 317366 | graham@reckonhelp.com.au

  • Tiffany
    Tiffany Member Posts: 30 ✭✭
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    Ok thanks Graham I see what you are proposing but I personally would rather calculate the 17.5% loading manually than manually calculate the offset allowances rolled up and have all the payroll items in the Payroll summary report balance. Either way there is a manual calculation required, but that will have to be I suppose until Reckon can program a better solution within their accounting package, one that allows us to select what payroll items the 17.5% is calculated on.

  • Graham Boast
    Graham Boast Accredited Partner Posts: 331 Accredited Partner Accredited Partner
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    Hi Tiffany

    with my method, there is no extra calculation required for overtime or leave loading. The hourly rate is the rolled up rate, so any loading is calculated on that rate. Once you do the initial calculation of the offset, you only have to look at it when processing pay rises. For casual employees, you simply enter the hours in the hourly rate, allowance quantities, and offset quantities.

    Any time you have an exception to a standard processing rule, you are introducing a source of potential error. I think my method overcomes this, and processing a pay is as it has always been.

    Graham Boast | 0409 317366 | graham@reckonhelp.com.au